The opening salvo in a supermarket price war was fired yesterday by Tesco as
it announced a multimillion-pound investment in price cuts.

Britain’s biggest supermarket was also forced to concede publicly that it had
scrapped a key profit target, set in the wake of a profit warning two years
ago, in a wide-ranging update to the City aimed at reassuring investors on
the turnaround of its British business.

In the latest attempt by the big supermarkets to combat the emergence of the
discounters, Tesco said that it would spend more than £200 million lowering
prices.